In the Chart Below, Assign the Directional Effect (I =

question 19

Essay

In the chart below, assign the directional effect (I = increase, D = decrease, or NE = no effect) of each of the following four transactions on the components of the book value of common shareholders' equity.
a. Recognition of compensation expense related to restricted stock.
b. Granting of stock appreciation rights to be settled with cash.
c. Recognition of compensation expense on stock appreciation rights.
d. Reacquisition and retirement of common stock at an amount greater than original issue price.
$\begin{array}{c}\begin{array}{|l|}\hline \text {Item}\\\\\hline \text {a.}\\\hline \text {b.}\\\hline \text {c.}\\\hline \text {d} \\\hline \end{array}\begin{array}{l|}\hline \text {Common Stock}\\\\\hline\\\hline \\\hline \\\hline\\\hline \end{array}\begin{array}{l|}\hline \text {Additional Paid-In}\\ \text {Capital}\\\hline\\\hline\\\hline\\\hline\\\hline\end{array}\begin{array}{l|}\hline \text {Deferred}\\ \text {Compensation}\\\hline\\\hline\\\hline\\\hline\\\hline\end{array}\begin{array}{l|}\hline \text {Retained}\\\text {Earrings}\\\hline\\\hline \\\hline\\\hline\\\hline\end{array}\begin{array}{l|}\hline \text {Treasury Stock}\\ \text { at Cost}\\\hline\\\hline\\\hline\\\hline\\\hline\end{array}\begin{array}{l|}\hline \text {Total Common}\\ \text { Shareholders' Equity}\\\hline\\\hline\\\hline\\\hline\\\hline\end{array}\end{array}$

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Definitions:

Fully Completed

A status indicating that a task, project, or product has been finished with all necessary requirements met.

JIT

Just-In-Time, an inventory management methodology aimed at reducing waste and improving efficiency by receiving goods only as they are needed in the production process.

Inventory Accounts

Accounts used to track the value of a company's stored resources that are intended for sale.

Production Cost Report

A detailed report that provides information about the total cost and output of a production department or process for a given period.